From NBC Universal: 2025-03-06 06:55:32

Macy’s reported mixed results for the quarter as CEO Tony Spring works on a turnaround amidst activist investor interest in taking the chain private. Comparable sales were down 1.1% overall, but online marketplace sales were up 0.2%, the highest since 2022. The company expects adjusted earnings per share of $2.05 to $2.25 for fiscal 2025, lower than Wall Street estimates.

During the fiscal fourth quarter, Macy’s reported adjusted earnings per share of $1.80, beating expectations of $1.53, but revenue of $7.77 billion fell short of the $7.87 billion expected. Net income for the quarter was $342 million, compared to a loss a year earlier. Sales dropped 4% to $7.77 billion.

Despite challenges, Macy’s turnaround efforts are showing signs of progress. Bloomingdale’s and Blue Mercury saw positive comparable sales growth, while Macy’s banner lagged with a 1.9% decrease in comps. CEO Spring has implemented store closures and strategy improvements to address long-standing issues at the legacy banner.

Activist investor Barington Capital has called for cost cuts, exploring selling luxury brands, and evaluating the real estate portfolio at Macy’s. This marks the fourth activist push at the department store in the last decade. Barington’s interest in the real estate portfolio could impact the company’s future strategies.

Macy’s plans to resume share buybacks under its $1.4 billion repurchase authorization, pending market conditions. The company aims to enhance the customer experience, operational excellence, and make prudent capital investments. Macy’s is committed to generating free cash flow and returning capital to shareholders through buybacks and dividends.



Read more at NBC Universal:: Macy’s (M) Q4 2024 earnings